They are doing the exact same thing that a great many other retailers do. They don't make money on the product. They try to cover by selling warranties and accessories. The sales staff usually doesn't make squat on the product. They barter the price of the product to induce you to buy the warranty. The net effect is a higher selling cost. This has been a Ponzi scheme from day one after it went public. It always was about the insiders making money on the equity. The focus has always been sales not margins. This enabled them to open more locations and further increase sales. That day is done. So is HGG. To lose this much money in the Christmas qtr is the end of the road. CYA.